Dear all, Recently some of you have shared advice on consignment
situations. I need to create a consignment agreement for the
designer I work for, who is considering working with several
galleries. I have never even read a consignment agreement, so I am
looking for advice. I have done some looking in the archives, but
have not found very specific I can write something
based on the main topics discussed, such as displaying merchandise
prominently, who is responsible for insurance, length of time for
consignment, payment methods, etc., but I fear I will leave out
something important. I have found one site on the web that shows a
sample agreement, but it doesn’t inspire total faith. Does anyone
out there have a good source for sample agreements they could direct
me to? I’m thinking if I could review several of them, I could
tailor something to our specific situation and stand a much better
chance of not leaving out vitally important details. Thank you all
and keep in touch.
Brenda
david lee jeweler
Mason City, Iowa
The following was excerpted and adapted from “Business and Legal
Forms for Crafts” by Tad Crawford.
CONSIGNMENT AGREEMENT
Agreement made as of this “???DATE”, between “???ARTIST NAME”
(hereinafter referred to as the “Artist”), located at “???ARTIST
ADDRESS” and “???GALLERY NAME” (hereinafter referred to as the
“Gallery”), located at “???GALLERY ADDRESS”.
WHEREAS, the Artist is a professional artist of good standing; and
WHEREAS, the Artist wishes to have certain artworks represented by
the Gallery, and
WHEREAS, the Gallery wishes to represent the Artist under the terms
and conditions of this Agreement,
NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants hereinafter set forth and other valuable
consideration, the parties hereto agree as follows:
-
Scope of Agency. The Artist appoints the Gallery to act as
Artist’s nonexclusive agent in the following geographic area:
“???GEOGRAPHIC AREA”, for the exhibition and sales of artworks in
the following media: “???MEDIA”. The Gallery shall document receipt
of all works consigned hereunder by signing and returning to the
Artist a Record of Consignment in the form annexed to this contract
as Appendix A.
-
Term and Termination. This Agreement shall have a term of five
(5) years and may be terminated by either party giving sixty (60)
days written notice to the other party. The Agreement shall
automatically terminate with the death of the Artist, a change in
Gallery ownership or location outside the area of “???GEOGRAPHIC
AREA”, or if the Gallery becomes bankrupt or insolvent. On
termination, all works consigned hereunder shall immediately be
returned to the Artist at the expense of the Gallery.
-
Commissions. The Gallery shall receive a commission of fifty
(50) percent of the retail price of each consigned work sold. In
the case of discount sales, the discount shall be deducted from the
Gallery’s commission. The Gallery shall receive a commission of
forty (40) percent of the retail price of each commissioned work
sold.
-
Prices. The Gallery shall sell the works at the retail prices
shown on the Record of Consignment, subject to the Gallery’s right
to make customary trade discounts to such partners as museums and
designers.
-
Payments. The Gallery shall pay the Artist all proceeds due to
the artist within thirty (30) days of sale for all work on
consignment. No sales on approval or credit shall be made without
the written consent of the Artist and, in such cases, the first
proceeds received by the Gallery shall be paid to the Artist until
the Artist has been paid all proceeds due. Payment for commissioned
work or special order work is due and payable upon delivery to the
Gallery.
-
Accounting. The Gallery shall furnish the Artist with an
accounting every month in the form attached hereto as Appendix B,
the first such accounting to be given on the first day of July,
-
Each accounting shall state for each work sold during the
accounting period the following the Artist’s inventory
number of the work, the date of sale, the sale price, the amounts
due the Gallery and the Artist, the location of all works consigned
to the Gallery that have not been sold and if the retail sale price
is over five hundred dollars ($500), . the name and address of the
purchaser. An accounting shall be provided in the event of
termination of this Agreement.
-
Inspection of Books. The Gallery shall maintain accurate books
and documentation with respect to all transactions entered into for
the Artist. On the Artist’s written request, the Gallery will
permit the Artist or the Artist’s authorized representative to
examine these books and documentation during normal business hours of
the Gallery.
-
Loss or Damage. The Gallery shall be responsible for the
safekeeping of all consigned artworks. The Gallery shall be
strictly liable for loss or damage to any consigned artwork from the
date of delivery to the Gallery until the work is delivered to the
Artist or a purchaser. In the event of loss, the Artist shall
receive the same amount as if the work had been sold at the retail
price listed in the Record of Consignment. In the event of damage
that in the opinion of the Artist, cannot be repaired, the Artist
shall receive the same amount as if the work had been sold at the
retail price listed in the Record of Consignment. In the event of
damage that in the opinion of the Artist, can be repaired, the
Artist shall receive payment for his time and materials used to make
the repair.
-
Alterations. No alterations of any kind may be made to
consigned artwork by any person other than the Artist without the
written consent of the Artist. In the case of alteration without
written consent of the Artist, the Artist shall receive the same
amount as if the work had been sold at the retail price listed on the
Record of Consignment.
-
Returns. Returns of sold work to the Gallery more than thirty
(30) days after the original sale date, without the written consent
of the Artist, become property of the Gallery and the Artist shall
receive payment therefor if not already paid. Returns of
Commissioned work are possible solely at the discretion of the Artist
and may require a service charge.
-
Insurance. The Gallery shall insure the work for fifty (50)
percent of the retail price shown in the Record of Consignment.
-
Copyright. The Gallery shall take all steps necessary to
insure that the Artist’s copyright in the consigned works is
protected, including but not limited to requiring copyright notices
on all photographic or electronic reproductions of the works used
for any purpose whatsoever.
-
Security Interest. Title to and a security interest in any
works consigned or proceeds of sale under this Agreement are
reserved to the Artist. In the event of any default by the Gallery,
the Artist shall have all the rights of a secured party under the
Uniform Commercial Code and the works shall not be subject to claims
by the Gallery’s creditors. The Gallery agrees to execute and
deliver to the Artist, in the form requested by the Artist, a
financing statement and such other documents which the Artist may
require to perfect his security interest in the works. In the event
of the purchase of any work by a party other than the Gallery, title
shall pass directly from the Artist to the other party. In the
event of the purchase of any work by the Gallery, title shall pass
only upon full payment to the Artist of all sums due hereunder. The
Gallery agrees not to pledge or encumber any works in its
possession, nor to incur any charge or obligation in connection
therewith for which the Artist may be liable.
-
Assignment. This Agreement shall not be assignable by either
party hereto, provided, however, that the Artist shall have the
right to assign money due him hereunder.
-
Arbitration. All disputes arising under this Agreement shall
be submitted to binding arbitration, before a mutually acceptable
arbiter in the County of San Diego, California and the arbitration
award may be entered for judgement in any court having jurisdiction
hereof. Notwithstanding the foregoing, either party may refuse to
arbitrate when the dispute is for a sum of less than five hundred
dollars ($500).
-
Modifications. All modifications of this Agreement must be in
writing and signed by both parties. This Agreement constitutes the
entire understanding between the parties hereto.
-
Governing Law. This Agreement shall be governed by the laws of
the State of California.
IN WITNESS WHEREOF, the parties hereto have signed this Agreement as
of the date first set forth above.
Artist_______________________________________Date________________
Gallery______________________________________Date________________
Authorized Signatory, Title
Steven Brixner Design - San Diego CA USA
mailto:mail@brixnerdesign.net
http://www.brixnerdesign.com
This book has sample forms to copy and use or retype
The Law (In Plain English for Art and Craft Galleries) by Leonard D.
Duboff, Linda C. Ligon (Editor) Average Customer Review: Out of
Print–Limited Availability
From Book News, Inc. Fills a gap in most medical and dental
educations: how to identify potential legal problems and to avoid
entanglement in litigation in connection with running a
business–dealing with employees and independent contractors, taxes,
insurance, advertising, and estate planning. Annotation copyright
Book… Read more
Elaine Luther
Chicago area, Illinois, USA
Certified PMC Instructor
@E_Luther